A UK family-owned carpet retailer has entered administration following sustained losses and declining sales, with expectations that only a portion of its creditors will be repaid.
The Kidderminster-based company, Adam Carpets Limited, appointed joint administrators Joph Young and Conrad Beighton of Leonard Curtis on 20 March 2025. The business, which had operated from Greenhill Works Industrial Estate, ceased trading immediately upon appointment, resulting in 51 redundancies.
Turnover dropped from £8m in 2022 to £5.8m in 2024, with profits turning to losses over the same period. The company attributed its struggles to a combination of economic pressures, falling demand, and reduced consumer confidence, particularly following the May 2024 election and tax hikes introduced in October 2024 and due again in April 2025.
During administration, a trading period generated £90,000 in profit as the business continued on a limited basis. Despite significant initial interest, 45 expressions and 26 signed NDAs, no offers were received for the business as a going concern. Administrators are now selling assets individually, with 10 offers received for machinery and equipment.
Secured creditor Praetura Commercial Finance is owed nearly £1m and is expected to be repaid from company land and property sales, which are valued at approximately £2.2m. HMRC and preferential employee claims, totalling £205,000, are also expected to be repaid in full.
However, unsecured creditors face significant losses. Of the £5.1m owed, £3.7m relates to a pension deficit, £666,000 to employee claims, and £767,000 to trade creditors. A shortfall of £3.4m is anticipated.
Managing Director Chris Adam said the closure was 'with huge sadness,' citing that 'UK consumers simply do not have the confidence in their finances to buy enough of our high-quality wool-rich carpet.'
Source: www.bigfurnituregroup.com